Caterpillar lawyers up, hires former U.S. attorney general

Caterpillar has hired a former U.S. attorney general to represent the company in the investigation that triggered a federal raid at its headquarters two weeks ago.

William Barr, who served as attorney general from 1991 to 1993 under President George H.W. Bush, will review “matters relating to the search warrants executed at Caterpillar on March 2,” according to a statement from the company. Barr currently is a senior attorney in the Washington, D.C., office of Kirkland & Ellis.

Cat CEO Jim Umpleby said in a statement that Barr holds “an impeccable track record” and is “well known for his integrity and direct, honest advice." He will assist the company in addressing the issues outlined in search warrants served March 2 by law enforcement officers from the Internal Revenue Service, the U.S. Department of Commerce and the Federal Deposit Insurance Corp.

"I have asked Bill—who has no prior connection with Caterpillar—to draw on his experience and that of his colleagues at Kirkland & Ellis and other advisers, to take a fresh look at Caterpillar's disputes with the government, get all the facts and then help us bring these matters to proper resolution based on the merits," Umpleby said.

The search warrants that were served at Cat locations in Peoria, East Peoria and Morton were related to the company's export filings. The warrants, which were leaked to the media, sought evidence pertaining to “failure to file or submitting false electronic export information” and “false and misleading financial reports and statements.”

'SMART MOVE'

In a high-profile case, when companies can afford it, they often turn to former attorneys general, men and women who know “the ins and outs of the Department of Justice and politics—which seem to be intertwined of late,” said Jeffrey Cramer, a former assistant U.S. attorney and a managing director at Berkeley Research Group. “The fact that former AG Barr is a Republican doesn’t hurt in this day and age.”

“It’s a smart move on many fronts by Caterpillar,” Cramer said.

Before holding the highest law enforcement position in the country, Barr served two years as deputy attorney general and two years overseeing the Office of Legal Counsel at the U.S. Department of Justice. Barr moved to the private sector and became general counsel at Verizon Communications and its predecessor company, GTE Corp. He joined Kirkland in 2009.

Barr’s next step will be to pull together a team of lawyers, as well as experts like forensic accountants, to prepare for negotiations with prosecutors, Cramer said.